Early morning reversals can be particular difficult for traders. Here we see a pullback in the ES futures (top chart, first blue arrow), followed by a bounce and a second pullback (second blue arrow). The second pullback saw new lows in the NQ futures, but not many of the S&P 500 sectors, including technology, healthcare, financial, and energy. Moreover, the NYSE TICK held at higher lows on the second pullback (bottom chart, first and second arrows) and the TICK never got to the significant -800 level of selling pressure. The non-confirmations and modest level of TICK suggested a lack of follow through to the downside, which was a useful tell for short-term traders.
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1 comments:
nice post. although on my TradeStation feed we did make a new low on NYSE TICK on that 2nd push down. However, price did not make a new low. Also, the Russell TICK, symbol $TIKRL in Tradestation, did not make a new low on that 2nd push down. This non-confirmation in the Russell TICK is usually a reliable sign for a market reversal.
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